Government Bets on AI to Drive Economic Transformation

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By: Staff Writer

June 14, Colombo (LNW): Rather than resisting the rise of artificial intelligence, Sri Lanka is positioning itself among a growing number of nations seeking to harness the technology as a catalyst for economic growth, productivity enhancement, and institutional reform.

Speaking at the International Labour Conference in Geneva, Labour Minister and Deputy Minister of Finance and Planning Anil Jayantha Fernando outlined the government’s ambitious vision to embed AI at the heart of the country’s development strategy. The initiative comes amid mounting concerns that AI could disrupt jobs worldwide, particularly in professional and administrative sectors.

Fernando argued that Sri Lanka intends to move beyond viewing AI as a threat to employment. Instead, policymakers are promoting what they describe as an “AI-first” strategy aimed at transforming public institutions, businesses, and traditional industries.

“Sri Lanka proposes a shift in this paradigm to start viewing technology and AI as a catalyst to re-architect our production relations to enhance productivity and value generation for shared prosperity,” he said.

Under the proposed framework, AI will be integrated into government operations and economic planning, with the objective of boosting efficiency and competitiveness. Authorities believe the technology can help businesses increase output, support workers in transitioning to higher-value employment, and modernize sectors that have historically recorded lower productivity levels.

The government’s vision extends beyond office environments. Officials argue that AI could play a transformative role in agriculture and the informal economy, sectors that employ a substantial share of Sri Lanka’s workforce. By introducing digital tools and data-driven decision-making, policymakers hope to increase productivity while making these sectors more attractive to younger workers.

Digital transformation has also been identified as a key national priority under President Anura Dissanayake’s administration. Officials see technology-driven growth as essential for expanding export earnings, strengthening economic resilience, and positioning Sri Lanka within the rapidly evolving global digital economy.

However, the government insists that labour protections will remain a central component of the reform agenda. Fernando announced that Sri Lanka ratified ILO Convention No. 190 on violence and harassment in the workplace in May, with legislation currently being finalized. Discussions are also underway regarding ratification of Convention No. 188, which focuses on workers in the fishing sector.

Meanwhile, an expert committee is consulting stakeholders on broader labour reforms designed to balance economic modernization with worker welfare.

Fernando also urged greater international collaboration to address widening digital inequalities, warning that the benefits of AI must not be concentrated among a small group of countries or corporations.

As Sri Lanka accelerates its digital ambitions, the success of its AI-first strategy will depend on whether technological progress can be translated into inclusive growth, better jobs, and shared prosperity. The coming years may determine whether AI becomes a disruptive force—or a powerful engine of national transformation.